One Stop Systems(OSS) - 2023 Q4 - Annual Results

Revenue Performance - Consolidated revenue for Q4 2023 decreased by 27.9% to $13.2 million, impacted by lower shipments to a former media customer, which affected sales by approximately $3.1 million[5] - OSS segment revenue declined 43.5% to $6.4 million, while Bressner segment revenue decreased by 2.5% to $6.8 million[5] - For the full year of 2023, consolidated revenue decreased by 15.9% to $60.9 million, but excluding revenue from the former media customer, revenues were up approximately 4.0%[13] - Revenue for Q4 2023 was $13.16 million, a decrease of 27.8% compared to $18.25 million in Q4 2022[36] Profitability and Loss - The company reported a net loss of $278,000, or $(0.01) per share, compared to a net loss of $3.3 million, or $(0.16) per share, in the same year-ago quarter[8] - Non-GAAP net income for Q4 2023 was $177,000, or $0.01 per diluted share, compared to a non-GAAP net loss of $2.7 million, or $(0.14) per diluted share, in the same year-ago quarter[9] - Adjusted EBITDA for Q4 2023 was $353,000, a decrease from $1.6 million in the same year-ago quarter[9] - Net loss for Q4 2023 was $277,560, compared to a net loss of $3.26 million in Q4 2022, resulting in a net loss per share of $0.01[36] Expenses and Financial Stability - Total operating expenses increased by 3% to $4.8 million, primarily due to transition costs[7] - Operating expenses for the year 2023 were $25.88 million, an increase from $18.83 million in 2022, driven by higher general and administrative costs[36] - Total current assets decreased to $42.44 million in 2023 from $45.84 million in 2022, primarily due to a reduction in accounts receivable[34] - Total liabilities decreased to $8.68 million in 2023 from $12.04 million in 2022, indicating improved financial stability[34] - Cash and cash equivalents increased to $4.05 million in 2023 from $3.11 million in 2022, indicating improved liquidity[34] Future Outlook - The company anticipates revenue of approximately $12.5 million in Q1 2024[4] - The five-year, unfactored sales pipeline has increased to over $1 billion, up from $850 million four months ago, driven by interest in AI/ML solutions[2] - The company anticipates new opportunities in AI transportable solutions and aims to penetrate the Defense and AI Transportable sectors[31] Gross Margin - Consolidated gross margin increased by 640 basis points to 33.7% from 27.3% in the same year-ago quarter, with OSS segment gross margin rising to 45.9%[6] - Gross margin for Q4 2023 was $4.43 million, down from $4.98 million in Q4 2022, reflecting a gross margin percentage of approximately 33.7%[36] Goodwill Impairment - The company reported an impairment of goodwill of $5.63 million in 2023, which was not present in 2022[36] Share Information - The weighted average common shares outstanding for Q4 2023 were 20,632,300, compared to 20,059,269 in Q4 2022[36]